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Louisiana could get $172M reimbursement from Obamacare Medicaid fees, following court ruling

Advocate, The (Baton Rouge, LA)

Aug. 22--Louisiana could getting more than $172 million back from the IRS, if this week's federal ruling against a fee tied to the federal Affordable Care Act stands.

Louisiana and five other states that rely on managed-care systems for delivering Medicaid had challenged the ACA's Health Insurance Provider Fee, which was charged to providers and then passed onto state taxpayers. The U.S. District Court for the Northern Division of Texas ruled late Tuesday that states are entitled to have that money repaid -- about $839 million across all six states. The decision could be appealed, so it's unclear when or if Louisiana could see any money from the decision.

"The government threat to disapprove our managed care plans risked the loss of those Medicaid funds," Attorney General Jeff Landry said in a news release announcing the ruling. "Yesterday's court victory not only means the IRS must repay the over $172 million that our Medicaid program was illegally forced to pay, but it also protects the State from having to pay millions more in future fees."

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